THE OPEN

Markets hanging on to the gap open but a lot of the early gains have disappeared. The DJIA +63, NAZ +22 and SPX +10. RUT and Small Cap Value the biggest winners up over 1%.

Strongest sectors- homies, ags, materials, oils, metals, emerging markets and trannies- laggards- biotech, semis, drugs, healthcare and staples;

Key stocks- 27 out of 40 higher led by POT BIDU BG MTW MSFT ICE RIMM AMZN UA laggards- DECK CELG KO SMH MO TIF WYNN GE GS;

NYSE- 1335 net winners;

NAZ- 900 net winners;

NDX-50 WINNERS;

OEX- 65 WINNERS;

IBD 100- 80 WINNERS;

VIX- 26.19 and down about 6% and AT the 10 SMA;

Up volume about 3X Down;

TRIN- 1.04;

As I suspected, the gap open led to some intense early selling as the NQ futures have already lost about 30 handles- the SPX about 10 from the highs. Volatility is here for a while.

The OIH with some interesting action as it has already at its 50% retracement from Wednesday's lows, a gain of 25 handles in less than 2 days. Yikes. The 200 SMA also right here at 170.